Companies Being Deregistered After Failing To File Annual Returns

The government is trying all its way to curb the black money the country and for that it has taken some serious steps in the past. After the news of demonetization was out, people were shocked and in a helpless state but somehow managed to come past that phase. But the businessman knew that something more was come for them. They understood that the government would take more serious steps to make all the transactions transparent and white. It has passed many reforms, like the RERA which makes the disclosure of all the property compulsory before any sale, purchase or even advertisement for the same can be done.

This February came as another shock for the companies when MCA released the list of the companies who had not been filing the annual returns with them and them government unregistered about 1 lakh companies.

It’s shocking to know that about 9 lakhs registered companies have not been filing annual returns with the Ministry if Corporate Affairs (MCA). This undisclosed amount is what is later transferred to the foreign banks

The MCA had sent notice to about 3 Lakh unlisted companies and had asked them to deregister themselves. MCA had made its point clear that if the companies registered under the MCA are not filing return under the MCA then they must immediately be stopped from operating in India.

And that is not all, after the names of the companies are stuck off, the ministry of corporate affairs specifies that all the directors on the boards of these companies would be obstructed from taking any such position in the future.

Nirmal Singh Lotus Green says that it is shocking to see that with around 15 lakh registered companies in India there are only 6 lakh companies that our filing their annual return. Which means that the rest of them are engaging in inappropriate activities. To curb such kind of activities, government is planning to freeze the bank accounts and the shell companies that are helping in converting the illicit money into legal cash. Shell companies are the major source of such illicit conversions.